Most companies allow six endorsements or supplemental coverages to meet their customers' needs. Name and describe the six. Which one is unique and stands apart from the others?
What will be an ideal response?
Answer:
-Personal articles floaters provide additional and extended coverage for all personal property. It is especially meant for expensive items and collections.
-Earthquake coverage is available in any state and is recommended for earthquake areas.
-Flood protection covers flood, mudslide, and some water erosion damage
-Inflation guard automatically updates your amount of coverage based on an index.
-Personal property replacement cost pays for a new item and not for a used one.
-Added liability protects you from judgments and lawsuits in excess of $100,000. It is also available for business and professional use of the home
The flood protection is unique in that it is generally administered and subsidized by the federal government. A community must apply and be approved by the Department of Housing and Urban Development. At that point insurers can offer the coverage with limits of $250,000 on dwellings and an additional $100,000 on contents.
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What is meant by the term clean surplus accounting?
XYZ Insurance Company markets a wide range of coverages. One type of coverage provides monetary compensation if a bonded party fails to perform certain acts. This coverage is called
A) property insurance. B) liability insurance. C) a fidelity bond. D) a surety bond.
The chance that a counter party may fail to meet a contractual obligation on a debt instrument is referred to as:
A) Credit risk B) Credit spread C) Loss given default D) Recovery rate
Which of the following activities does senior management not do?
a. ensure that personnel are qualified b. ensure that controls are in place c. execute hedge transactions d. establish policies e. define roles and responsibilities